Germany: Industrial production contracts unexpectedly in December
February 7, 2014
In December, industrial production decreased 0.7% over the previous month in seasonally-adjusted terms. The reading contrasted both the revised 2.4% expansion registered in November (previously reported: +1.9% month-on-month) and the 0.3% increase the markets had expected. The contraction was driven by lower manufacturing production and a deterioration in electricity and energy supply.
Compared to the same month of the previous year, industrial output increased 2.6% in December, which came in below the revised 3.8% expansion registered in November (previously reported: +3.5% year-on-year). In the full year 2013, industrial output decreased 0.1%, which was up from the 0.4% contraction observed in 2012.
Forecasters polled by FocusEconomics expect that industrial production will expand 2.5% in 2014, which is up 0.2 percentage points from last month's forecast. For 2015, the panel sees industrial production accelerating to a 2.6% expansion.
Author: Ricardo Aceves, Senior Economist